It definitely looks like it's running really light, the prop up higher definitely wouldn't hurt. I like the idea of a wet stuffing tube, it'll give you lots more room to play without having to drill and patch.

No need to feel bad scorp. I thought it looked pretty much where it needed to be too. Hmmm wonder if that would help the Arapaho.

It does run light in the front wp. Larry also pointed out the "aerolift" that the hull has. It didn't get caught on video but it did a really nice gainer with 1/2 twist when Chris and I were running together. Scared me, I thought it was going to land on his boat when it came down.

Last weekend we had a District race with five Titan 40s in the P-Mono class. They were very competitive, we can set them up. Some comments on the OP's boat:

1) The stinger height looks okay, my Titan's is lower, some of the other guys' are a tad higher.
2) Probably too much prop. Drop down to a 2-blade and slow the boat down a bit. These boats are tough to keep on the water above 50-55 mph.
3) Add about a pound of lead to the boat at the CG. This counteracts the areo lift and helps plant the boat better.
4) Try the CG at 10" to 10.5"
5) Stinger angle should be set with the keel on a FLAT surface. You will probably need 1 to 2 degrees of down angle at the prop end - no more or you'll have other problems.
6) Tabs....try to keep them above the bottom of the boat. If you can't get the nose down with CG or a little strut movement then try the inside tabs.

Keep trying. These are fun boats and handle rough water better than the ubiquitous DF and CS hulls do. You will get it running well.

I suppose this one is about due for an update. I've been working on it, but thought I'd get it pretty much done before posting though.
None of the local hobby shops had enough tube sizes to go from big enough to small enough so I kinda winged it and built a real "wet box" inside the hull. This way the exit hole is plenty tall enough and not overly wide like it would have been with a tube anyways.

Now I have to let it finish curing so I can go test it for leaks in the tub.

Bad thing is it leaked. Got a small trickle at the top rear port side (right at the nut holding the bottom of the strut). After it dries out good I'll fix that with some more epoxy and milled glass. It won't really show back there so won't even have to worry about trying to hidie it.

After getting the leak fixed moved on to other things.
Before re-installing the motor and esc wanted to offset any extra weight the box created and try to get the cg forward as zozer suggested. Just so happened that a friend had given me a 5 cell 4500 ma ni-mh rx pack, so cut an opening in the foam and installed it up front.

With the addition of the stuffing box found a new way to mount the steering servo as well. With the original setup I had to install the trim tabs before putting in the shelf. This way I still have access to install them if needed after initial testing.

edit: Took me a while to find it but knew there was an almost empty divers soft weight pack around here somewhere. There was just a hair over a pound of lead shot left in it so shrink tubed it to make sure it doesn't spill all over the place. Then added some velcro to the hull's keel and the tube and set it in as close to cg as I could get it. Worked out well as it now balances exactly at 10-1/2" from the transom. I think we're ready to test again next Sunday. (Since were not running on Easter. Really just as well since we're having near gale force winds this weekend).